Marion looking to save money with change to audit process

Marion looking to save money with change to audit process

Dropping contract to switch service providers could net city $ 30,000

news@theeveningtimes.com

Marion tabled a proposed three-year renewal contract with its auditors to see if Arkansas Legislative Audit can do one instead and save the city $30,000.

Mayor Frank Fogleman told the city council that the city’s three year contract with Memphis-based auditors Watkins Uiberall is up, and that the firm is offering to renew the contract.

“They have sent us a proposal for another three years,” Fogleman said.

The new contract would charge the city $29,000 for the 2017 audit with a three percent increase the following two years to $29,900 for 2018 and $30,800 for 2019.

Fogleman said the council can vote to renew the contract or solicit requests for qualifications from other firms.

“That’s just a proposal for y’all,” Fogleman said. “If you want to act on it, that’s fine. If you want to solicit qualifications, we can do it.”

Councilman Kelly O’Neal asked whether the city could ask Arkansas Legislative Audit to do the city’s audit and save the city money.

“Aren’t they free?”

O’Neal asked. “They can do one every year, can they not?”

Fogleman said Legislative Audit can do an audit, but that there is a time factor involved. Arkansas Natural Resources Council, which lent the city the money for their water projects, needs to see the audit by the end of April.

“They can do it every year,” Fogleman said. “But can they get it done in time?”

Fogleman told O’Neal that Legislative Audit works on a schedule and that Watkins Uiberall would probably be able to do the audit quicker and meet ANRC’s request.

“There are other benefits,” Fogleman said. “I think they can do it quicker. And they know us and have worked with us.”

City Treasurer David Rikard also questioned whether Legislative Audit could get to it in time.

“They’re not necessarily staffed and they don’t do audits for everyone,” Rikard said. “You have to get on their list.”

Rikard said it is unlikely that Marion could get on the list and have it completed by April.

“They already have lists of ones that they are doing,” Rikard said. “I don’t mind asking at all. I just know from prior audit experience that it is unlikely that you can have someone come in and do an audit the size of Marion in the first three months of the year.”

County Judge Woody Wheeless, who is also Marion Fire Chief, said Legislative Audit is about two years behind.

“They are not timely,” Wheeless said. “When I got elected in 2013, I was signing off on audits from 2011.”

O’Neal asked Fogleman to find out if Marion could get on Legislative Audit’s list.

“Would you be all right with that?” O’Neal asked.

“If we tell people we are going with Legislative Audit, it will save us $30,000 a year.”

“Sure,” Fogleman said.

Fogleman said he will also need to ask whether ANRC is okay with waiting for an audit report.

“I suspect ANRC won’t want to wait a couple of months,” Fogleman said.

“They have bond holders they have to report to. My guess is they might wait a couple of days.”

“If they can’t do one this year, maybe we can get set up for them to do an audit for next year,” O’Neal responded.

Rikard suggested the city hire Watkins Uiberall to do the 2017 audit so as to not delay ANRC’s request. He said that would give the city time to see if Legislative Audit can do one for Marion, and also time to decide whether they want to renew their contract or advertise for qualifications from other firms.

“The proposal for the next year was $29,000,” Rikard said. “So we can opt for one more year for a small retention fee and not commit to three years. Then that will give us time to see if we could get Legislative Audit to do it in the future.

I think there is no way we will get Legislative Audit to get it done by April.”

Councilman David Bigger agreed.

“I think that sounds reasonable to hire them for one year and then look in to whether Legislative Audit can do it,” Bigger said.

O’Neal said his point is to save the city $30,000 a year on audits.

“That’s fine,” O’Neal said. “I’d rather have Legislative Audit come in and save us $30,000.”

Fogleman said he will contact Legislative Audit to see if they are available and report back to the council at a special council meeting in December if needed. The city council canceled their December 26 meeting due to the Christmas holiday.

By Mark Randall